LendInvest Limited (LendInvest) is planning to issue sterling-denominated 5.25 per cent Fixed Rate Notes due 2022 (the “Bonds”) via its wholly-owned subsidiary, LendInvest Secured Income (the Issuer).
Payments under the Bonds will be irrevocably and unconditionally guaranteed by LendInvest and the Bonds will be secured by way of a floating charge over all of the over the whole of the undertaking and all property, assets and rights, both present and future, of the Issuer.
LendInvest has a distinctive lending model that aims to create a cleaner, quicker and more flexible borrower experience for professional property investors and developers. Leveraging its team’s mortgage underwriting experience, loan servicing track record, and its proprietary technology-enabled tools and processes, the Company believes it is able to match the demands of professional bridging finance borrowers, who frequently require rapid turnaround times. LendInvest believes it has filled a funding gap in the UK’s mortgage market. As at 31 March 2017, the total principal amount of loans provided by the Group since it commenced operations in 2008 (excluding extensions) was GBP811.34 million.
LendInvest is equally innovative in the way it funds its loans, making diversification of funding sources a fundamental tenet of its strategy for business stability and growth. As of 31 March 2017, LendInvest was managing and advising on GBP412.5 million of facilities on behalf of a range of UK and international investors that invest in the loans it originates across three main entry points: an online investment platform for high net worth investors, self-certified sophisticated investors, investment professionals and corporate investors; two funds overseen by LendInvest Capital, the Company’s fund management and advisory division which manages assets on behalf of private clients, wealth managers and institutions; and four dedicated funding lines facilitated by UK and international institutions including Macquarie Group and a leading UK challenger bank. Proceeds of the retail bond issue will constitute a fourth funding source.
In its latest financial year (ended 31 March 2017) LendInvest reported strong gross revenue growth and remained profitable, while investing significantly to support the business’s growth. Total annual lending continued to grow throughout the year, reaching GBP286 million excluding extensions.
The net proceeds of the issue of the Bonds will be used by the Company to fund the origination and/or purchase of loans which satisfy certain eligibility criteria.